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Kodak posts profit, digital sales suffer

Kodak posts profit, digital sales suffer
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First Published: Thu, Feb 01 2007. 01 16 PM IST
Updated: Thu, Feb 01 2007. 01 16 PM IST
 
NEW YORK: Eastman Kodak Co. posted a better-than-expected fourth-quarter profit on January due to lower costs, higher technology licensing revenue and strength in its photo kiosk business.
Shares of Kodak, the top maker of photographic film, rose 1.8% to $25.97 after the company said it managed to boost sales from kiosks, which are self-service terminals where customers can edit and print digital photos.
But sales of digital cameras and accessories fell 25% as Kodak focused on products with higher profit margins, and fourth-quarter revenue missed average Wall Street estimates.
“This quarter revenue was light (and) most of their profitability comes from intellectual property licensing, which is nonrecurring,” said Cross Research analyst Shannon Cross. “We continue to believe that investors are most focused on what is going to happen on Feb. 8.”
At the investor meeting next week, Kodak’s first after twice postponing in 2006, executives are expected to shed light on their plans once all the restructuring is done. Kodak may also introduce new products, possibly including inkjet printers.
Kodak has said that 2007 would be the last year of its lengthy and costly transformation into a smaller company that focuses on digital photography products and services.
It reported net income of $16 million, or 6 cents a share, in the fourth quarter, compared with a loss of $46 million, or 16 cents a share, a year before.
Excluding one-time costs and other special items, the profit was 59 cents a share, beating the average analyst forecast of 56 cents, according to Reuters Estimates.
But revenue fell 9% to $3.82 billion and was short of the Wall Street consensus of $3.95 billion. Analysts said that included $123 million of technology licensing revenue.
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First Published: Thu, Feb 01 2007. 01 16 PM IST